Difference between LLP and a Private Limited company Registration in Madurai

Difference between LLP and a Private Limited company Registration in India

Difference between LLP and a Private Limited company, Birds Eye Comparison

Registration process

The private limited company registration process and the LLP registration process are very similar with some difference in the documents and forms filed for integration. There are steps for inclusion of a private limited company

LLP registration has a similar process:

1. Getting Advanced Mark Declaration (DSC) for the proposed accomplices

Registration costs

When government fees for inclusion of LLP are significantly cheaper

Specialty

Both LLP and Private Limited Company offer similar features. LLP and

Ownership

A privately owned company offers more flexibility for promoters when it comes to ownership and ownership sharing. “The responsibility for private limited company is controlled by its shareholding and a private limited company can have up to 200 investors. Further, since shareholders are not directly involved in the management of the company, there is a clear distinction between shareholders and management in a private limited company. Therefore, a private limited company is advantageous when it comes to ownership and management facilities.

Compliance

Duty consistence is something very similar for both private limited company and LLP. However, LLPs have significant benefits when it comes to compliance with the Ministry of Corporate Affairs. If the annual turnover of LLP is Rs. 40 lakh and a capital contribution of Rs. 25 lakhs. A private limited company, on the other hand, has to file its financial statements with the Ministry of Corporate Affairs every year.

The minimum optional tax is levied on both LLP and Pvt. Apply to Ltd. Company.

Fines and penalties

Penalties for non-compliance or late filing of documents with the Ministry of Corporation Affairs are often higher for LLPs, as there is no cap on liability if compliance is not maintained, a fee of Rs 100 per day is charged. . Therefore, LLPs can bring hefty fines or penalties from the MCA for non-compliance. Therefore, it is important for the promoters of LLP to be aware of the due date and file the required documents in the registrar in a timely manner.

Other factors

Private limited companies have existed longer than LLPs and gained wide recognition in India and the world. Therefore, there are well-established procedures and procedures for private limited companies. LLP on the other hand is a recently launched entity in India. Therefore, some rules, regulations and procedures have continued to evolve. LLP Also not recognized in India as a private limited company, as it is a relatively new concept.

Foreign ownership

LLP: Foreigners are allowed to invest in LLP only with the approval of Reserve Bank of India and Foreign Investment Promotion Board (FIPB).

Existence or liveliness

Partnership- The existence of a partnership business depends on the partners. May be for dissolution due to death of spouse.

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